Rusgidro · RUS:HYDR

Rusgidro — RusHydro — Renaissance Capital 24th Annual Virtual Conference (June 2020)

31 slides from Rusgidro's conference presentation, Jun 25, 2020

  1. Slide 1: RusHydro Group Investor presentation

    RusHydro Group Investor presentation Renaissance Capital 24th Annual Virtual Conference June 25, 2020

  2. Slide 2: Disclaimer

    Disclaimer The following applies to this presentation (“Presentation”), and you are therefore advised to read this important notice carefully before reading, accessing or making any other use of this Presentation. This Presentation and the information contained herein are strictly confidential to th

  3. Slide 3: Presenting Team

    Presenting Team Andrey Kazachenkov Member of the Management Board, First Deputy CEO Larisa Kabanova Dmitry Yakovlev Head of Corporate Investor Relations Finance Manager 3

  4. Slide 4: Company overview

    Company overview 4

  5. Slide 5: Extensive infrastructure assets portfolio across the country

    Extensive infrastructure assets portfolio across the country Key facts 73(1) 35 4 5(2) >100,000 km c.4,000 km hydro power Major fossil fuel types of non-hydro retail of electricity grids of heat distribution plants plants renewables companies networks Location of key assets European Russia Siberia F

  6. Slide 6: Geography of key assets. Benefitting from diversification

    Geography of key assets. Benefitting from diversification Key highlights Installed capacity breakdown by regions(1)  81% of RusHydro’s installed capacity is represented by Top-5 power plants (MW) hydro power plants (HPPs) – a green low cost, high 6,400 marginal, emissions-free, sustainable energy s

  7. Slide 7: Corporate governance. Solid state owned company with sound corporate governance

    Corporate governance. Solid state owned company with sound corporate governance Key highlights Shareholder structure(1)  The Russian government directly owns 61.2% of RusHydro. A special Presidential decree stipulates minimum government's ownership at 60.5%. In October 2019, Other shareholders Russ

  8. Slide 8: ESG profile. Direct focus on sustainable development goals

    ESG profile. Direct focus on sustainable development goals RusHydro remains the leader in renewable electricity production (hydro, solar, wind, geothermal) with 4/5 of installed capacity (31 GW) coming from emission-free generating facilities Ongoing improvement of ESG aspects RusHydro is a particip

  9. Slide 9: RusHydro – a socially responsible company

    ESG profile. RusHydro – a socially responsible company Hydropower plants Thermal power plants 1. Boguchanskaya HPP 38. Amurskaya CHPP-1 2. Bureyskaya HPP 3. Upper Volga HPP cascade 4. Vilyuiskiye HPP cascade Supports 19 environmentally sensitive areas 39. Anadyrskaya gas CHPP 40. Anadyrskaya CHPP 41

  10. Slide 10: RusHydro: yesterday and today

    RusHydro: yesterday and today 2015 2019 38.7 Installed electric capacity, GW 39.7(1) 127.4 Electricity generation, TWh 142.8 (1) 73 97.5 EBITDA, RUB bn/ EBITDA margin, % 20% 24.0% 14.9(2) 47.0(3) Dividend, RUB bn/ Dividend per share, kopecks 1.34 (2) 3.84(3) 222 Total debt, RUB bn / 235.5(4) 2.4x Ne

  11. Slide 11: Key highlights and operating results

    Key highlights and operating results 11

  12. Slide 12: Key figures & highlights of 1Q 2020

    Key figures & highlights of 1Q 2020 39.0 117.7 36.6 31.1% 121.5 1.2x RUB bn EBITDA margin net debt/ TWh RUB bn RUB bn LTM EBITDA RusHydro Group power Revenue EBITDA in 1Q’20 net financial debt of output in 1Q’20 (1) in 1Q’20 (+23.8%) RusHydro Group (2) (+19.2%) (+7.5%) 1 • Total electricity output o

  13. Slide 13: 1Q 2020 operating results

    1Q 2020 operating results Strong performance, no volume risks foreseen • The reservoirs of the Volga-Kama cascade were filled to the maximum level following strong water inflows • Favorable production growth in April (please see slide 6) • No volume risks foreseen going forward ↗ Volga-Kama HPPs and

  14. Slide 14: Stable production expected in 2Q'20

    Hydropower production trends 2017-2020 Stable production expected in 2Q’20  Stellar operational results in 1Q’20 on the back of increase of water inflows:  Stable production expected in 2Q’20: • Volga-Kama cascade – inflows to Rybinskaya, Zhigulevskaya and • Volga-Kama cascade – inflows above the

  15. Slide 15: Operating highlights 2015-2019

    Operating highlights 2015-2019 Stable production growth year over year High-margin, low cost hydropower electricity generation remains RusHydro’s core business. RusHydro is a price-taker. The company’s hydropower plants produce electricity regardless of market demand and economic volatility. Factors

  16. Slide 16: Market overview

    Market overview 16

  17. Slide 17: Market overview: Stable pricing environment

    Market overview Stable pricing environment  Spot market price dynamics:  2019: 1st price zone – 1,298 RUB/MWh (+1.0% y-o-y), 2nd price zone – 774 RUB/MWh (-6.3% y-o-y)  1Q 2020: 1st price zone – 1,272 RUB/MWh (-9.4% y-o-y, +4.8% q-o-q), 2nd price zone - 886 RUB/MWh (-11.2% y-o-y, +12.4% q-o-q) 

  18. Slide 18: Market overview: RAO ES East tariff regulation

    Market overview: RAO ES East tariff regulation Improvement of financial shape In 2020 average growth of electricity and heat tariffs in the Far Eastern Federal District amounted to 5.1% and 3.9% respectively Approved electricity tariff dynamics for key operating companies 1 Approved heat tariff dyna

  19. Slide 19: Financial results

    aa ] RusHydro Financial results

  20. Slide 20: 1Q 2020 Revenue

    1Q 2020 Revenue Increase of water inflows and diversified asset base Key highlights Revenue dynamics  Revenue in 1Q’20 increased by 7.5% and reached RUB 117.7 bn, primarily driven by hydropower production +7.5% growth on the back of increased water inflow 117.7  70% of revenues in 1Q 2020 came fro

  21. Slide 21: 1Q 2020 EBITDA and profitability

    1Q 2020 EBITDA and profitability Solid performance driven by hydropower segment Key highlights EBITDA & EBITDA margin dynamics  EBITDA increased by 23.8% in 1Q 2020 and reached RUB 36.6 EBITDA bn, resulting in EBITDA margin of 31.1% following stronger than +23.8% EBITDA margin expected production g

  22. Slide 22: Key financials 2015-2019

    Key financials 2015-2019 Solid top line growth. Dividends protected by new policy ↗ Revenue growth in recent years driven by increased output, commissioning of new capacity, favorable pricing environment and the role of hydro in Russia’s power system. RusHydro is a price taker ↗ Continuous improveme

  23. Slide 23: Debt profile

    Debt profile (1) Solid financial position. Ruble-denominated debt Key highlights Debt repayment profile (2) (RUB bn)  Total financial debt as of April 30, 2020: RUB 223.7 bn  Total debt is 100% ruble-denominated following successful divestment of PJSC MEK  Average RUB interest rate of 7.3% p.a.(2

  24. Slide 24: Update

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  25. Slide 25: 2020 outlook and key drivers of financial performance

    2020 outlook and key drivers of financial performance 1 • RusHydro maintains solid operational outlook through 1H’2020 Operations • Increase in production following launch of Nizhne-Bureyskaya HPP, Zaramagaskaya HPP-1 and Sakhalinskaya GRES-2 2 Financial • Following commissioning of new generating f

  26. Slide 26: Appendix

    os WwW Appendix

  27. Slide 27: Capex: investment plan 2020-2025

    Capex: investment plan 2020-2025 Well-balance in terms of financing sources On March 26, 2020 the Board of Directors approved RusHydro’s new investment program for RUB 632 bn2. Key differences vs. prior investment program • Term of the program - 6 years vs. 5 years for the prior investment program •

  28. Slide 28: Dividends. New policy ensures guaranteed payout

    Dividends New policy ensures guaranteed payout Key highlights  To improve predictability and consistency of forecasting dividend payments Board of Directors approved an amended 3- year dividend policy setting a minimum dividend threshold at average dividend paid over the previous three years: Divmi

  29. Slide 29: Modernization of thermal capacities

    Modernization of thermal capacities. 4 projects approved with guaranteed return on investment In July 2019 the Government approved all 4 projects submitted by RusHydro for modernization Characteristics Approved projects for modernization Yakutskaya GRES-1  Long-term plan for capacity renewal and De

  30. Slide 30: Selected consolidated financial information

    Selected consolidated financial information Consolidated income statement 3 months ended 31 March Consolidated statement of financial position As at 31.03.2020 As at 31.12.2019 RUB mn 2020 2019 RUB mn Revenue 106,214 99,237 ASSETS Government grants 11,470 10,223 Non-current assets Other operating in

  31. Slide 31: Thank you for your interest in RusHydro Group

    Thank you for your interest in RusHydro Group IR contact details tel.: +7 (495) 122 05 05 ext. 1304 [email protected] 31

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